|Multiple time frame analysis is one of the most important things you should be doing before you take every trade.|
So, in order to get you to remember this before you bust out your charts and start trading, consider this true story. It explains what this is and why you need consider this before you make every trade.
If you live in an area where there can be bad weather for a few days in a row, you understand the importance of knowing what the weather is going to be like if you plan on doing anything outside. (i.e. Picnic, motorcycle ride, sporting event, outside concert, etc.)
Especially if you live in areas where there are always a potential for tornadoes, hail storms, snow storms, hurricanes, and so on.
So let me explain a few very important lessons (as traders) we can learn by simply scanning the weather radar. Also read the Simple way of trading multiple time frames in forex.
Lessons Traders can Learn from the Weather Radar
This may sound silly but trust me, this is some good stuff...
The other day I was planning an outside activity that required there to be no rain, no snow, no excessive winds, and so on.
You get the point...
It needed to be nice and sunny out at this time (4 PM).
Here is what the radar would have looked like earlier in the day before the special event I was planning at 8 a.m.